In recent years, FinTech software development has been one of the most popular IT services. Customers’ preference for easy-to-use goods and services and market players’ enthusiasm to adopt technology improvements changed the financial industry in that route.
The start was all about infrastructure, computerisation, and streamlining trading/lending/banking procedures. Now, FinTech has matured into a dominant industry with billions of end-users, billions of revenue, and numerous types of software.
This post will concentrate only on the most popular and profitable kinds of FinTech that can elevate business and yield concrete results.
WHAT IS FINTECH & FINTECH SOFTWARE?
Fintech refers to progress in the financial and technology crossover arena, and it often refers to enterprises or services that employ technology to provide financial services to businesses or individuals. Fintech refers to any organisation that delivers financial services using software or other technology, from mobile payment apps to cryptocurrency.
Fintech, in its broadest sense, refers to any organisation that uses the internet, mobile devices, software technology, or cloud services to conduct or connect with financial services. Many fintech products are intended to connect customers’ finances with technology for convenience, while the phrase also refers to business-to-business (B2B) solutions.
Fintech has made advances with dozens of applications, altering how customers access their finances. Square (SQ) mobile payment apps – Get Square, Inc. Fintech has disrupted traditional financial and banking industries, potentially posing a danger to traditional, brick-and-mortar banks or financial institutions, according to a Class A Report to insurance and investment businesses.
In the beginning, fintech referred to technology applied to the back-end systems of banks or other financial institutions. Still, the term has now expanded to include a myriad of additional consumer-focused applications. For example, this technology will handle funds, trade stocks, pay for groceries, and manage insurance by 2020. (and often on your smartphone).
Modern FinTech isn’t just about financial software (even though online banking is a significant part). It includes insurance, lending and mortgage, asset and risk management, security, and other industries. This business is so vast and rapidly evolving that, according to Statista, the number of FinTech companies will have surpassed 25k by 2021.
And this is a simple fact to convey. FinTech is booming because people adore it! From peer-to-peer money transfers and rapid online loans to smartphone piggy banks and Bitcoin mining, we’re used to financial technology.
The following are the top ten most common types of financial technology to consider in 2021:
- Digital banking
- RegTech
- Blockchain solutions
- InsureTech
- LendTech
- TradeTech
- WealthTech (personal finance)
- PayTech
- Business plan software
- Financial, social networks
There are other types of FinTech solutions besides those described above. In addition, there are numerous typologies and techniques of define FinTech categories. For example, some regard PayTech as a FinTech category, suggesting that it comprises all forms of payment systems. However, others are more at ease with classifying each form of payment option as a separate category (e.g. P2P, payment processing solutions, payment gateways, digital wallets etc.)
THE MOST SUCCESSFUL TYPES OF FINTECH SOFT IN 2021
Now that we’ve covered the fundamentals, let’s go into the most promising types of FinTech software, concentrating on why and how they may improve the modern company.
Banking
It is appropriate, to begin with, the most common sort of financial technology software. Customers can access their accounts and complete financial transactions remotely via a specified device using online banking solutions (both web and mobile). Henceforth, users are no longer required to visit a physical branch to manage their money, run their accounts, view transaction history, pay bills, and perform other duties.
Notifications and reporting are important elements of FinTech/banking software. Customers are informed of account activity like transfers, card payments, and ATM withdrawals via notification systems. Reporting systems categorise a customer’s transactions and allow them to track their expenditure and revenues.
Remittances (which allow for cross-currency domestic and international money transfers), anti-fraud or anti-money laundering checks, and chat or message systems for safe document management and personal contacts with bank officials are all elements of banking software.
Mobile banking software includes real-time payments, financial transfers between accounts, account monitoring, bill payment, and ATM geolocation.
FinTech Software Category: Insurance
Insurance technology, or InsurTech, provides consumers with faster and less expensive house insurance, car insurance, and data security solutions. It is typically given using an internet platform that includes software that supports the delivery process.
Insurance CRM (Customer Relationship Management) software gives insurance agents access to a database of their clients, allowing them to prepare documents, manage assignments, and track progress. It often contains job management, document management, commission tracking capabilities, and an automation workflow engine.
Insurance agency software aids in the streamlining of an agency’s workflow. It offers document storage for various file types, payment and commission administration tools, reporting, and a chat system for agent contact.
Investment
Investment management software consolidates all of the information needed by users to manage and maximise their investment performance into a single location.
The programme often provides order placing, execution, allocation, and trade processing capabilities for investment managers. Costs, performance, and other financial measures may be calculated via a portfolio accounting function. Reporting tools keep track of account activities as well as the performance of investment plans. Additional market data streams for pricing, business actions, and dividend accruals may also be accessible.
FinTech Software Category: loan lending
Loan lending software is intended to manage loan requests from many channels and market sectors, facilitating interactions between borrowers, partners, and lenders.
A management system is typically used for user account creation, system authentication, and user permission. In addition, because user input is frequently in the form of questions and answers, form management features are included in the software. For example, a document management system allows loan processors to attach and store electronic papers for each client. At the same time, a collateral module tracks collateral such as assets used to secure debt, legal forms, and valuation.
Commercial loan software (a type of FinTech Software) has risk management capabilities that allow lenders to assess user account information and ratings thoroughly. In addition, collections and provisioning tools enable continuous follow-ups and history records, whereas application management solutions collect data from customers and specialised goods.
Payments
Customers are given personal accounts to log into the payment processing software. Instant payment features save all customer data, eliminating the need for consumers to re-enter their information. In addition, multi-currency and international payment options are typically accessible in a variety of languages.
Dispute resolution elements deal with any concerns that may emerge, while fraud prevention measures may include filters for billing mismatch, high-risk countries, and other factors. In addition, analytics tools could be added to help payment processing organisations track faults and difficulties.
Finance for Individuals (Personal Finance)
Personal financial software allows users to monitor their income and expenses via web and mobile applications. The applications may include online banking capabilities that allow clients to load transactions and automatically transfer them to other accounts. In addition, currency support capabilities take advantage of real-time exchange data to allow users to conduct transfers in many currencies.
Reporting tools and infographics provide extensive information on how users spend their money, and notification systems let users set periodic transaction reminders and payment schedules. In addition, users can utilise balance forecasting to predict their future account balances.
FinTech Software Category: RegTech
Regulation and compliance management technology (RegTech) for corporations and financial institutions employs big data analytics and machine learning to observe laws and manage how organisations comply with the regulations and standards that apply to their industry.
Financial risk management software maintains a database of risk exposure and account positions in real-time. Data security features detect problems and aid in optimising compliance operations, whilst analytics tools give metrics and charts for tracking and assessing compliance progress. In addition, automation of planned compliance duties is possible thanks to compliance task management tools.
Risk assessment tools in financial fraud detection software highlight risky transactions and issue alerts to administrators. Real-time monitoring is common, and ID analytics are typically available for storing data about user risk evaluations.
FinTech Tools for Business
FinTech software may help firms manage their books, get paid faster, and improve interactions with customers and staff. Customer Relationship Management (CRM), payroll, accounting, financial modelling, and analysis are just a few of the solutions available. Here are a few examples:
Zenefits automates payroll and benefits procedures, as well as maintaining compliance for payroll management. It’s free cloud-based software that earns money via health insurance commissions.
Expensify assists businesses in keeping track of employee expenses and allows employees to submit charges for reimbursement. There is a cost classification system in place, as well as the ability to upload receipts. Employees may use the Expensify app to take photos of receipts and manage their cases. In addition, employers can receive updates on when expenses have been cleared for reimbursement and when they will be put into a worker’s account.
Emburse is a platform that allows corporations to establish virtual credit cards for teams, allowing them to assign a card to each business unit that everyone may use. Emburse gives you a credit card number, expiration date, and security code so you may use it to make online transactions. Furthermore, the technology can distribute and manage actual cards to members of a business unit.
Due is an invoicing and payment organiser that takes a range of payment methods and offers a digital wallet to assist you in managing your payment forms. You may set up the programme to automatically deposit funds into your bank account, and you can even set up recurring invoices.
Xero is a business accounting platform that offers bookkeeping services. It provides a suite of accounting software as a Software as a Service (SaaS) and is interoperable with several popular apps, including QuickBooks.
Kabbage is a funding platform that allows firms to acquire a $100,000 working capital credit line. This money can be utilised to purchase equipment, increase your payroll, or conduct other business functions.
Square is a payment facilitator that employs terminals compatible with tablets and smartphones, allowing businesses to accept credit card payments from any location. In addition, square is now NFC (Near-Field Communications, a type of radio transmission) compliant, allowing customers who save payment information on their phones to make transactions. Square also accepts online payments and can provide client feedback after a purchase is made.
Some FinTech Software and Apps to Keep an Eye On
There are many Financial Technology (FinTech) apps available for consumers and small businesses for paying bills, sending money, purchasing online, and managing expenditure. Many are delivered via mobile applications, reflecting the increased preference for one-touch access to financial services enabled by FinTech technologies.
MoneyLion is an American company that provides consumers with secure loan access by acting as a middleman between the lending, saving, and management processes. It is presently valued at close to $1 billion and is on track to become the next FinTech “unicorn.”
Nubank, a Brazilian programme, is great for keeping track of invoices and payments, as well as categorising your expenditure. The system provides real-time updates, and the corporation operates a user loyalty programme that awards Nubank Reward points, which may be used to cover certain categories of expenses.
Coinbase is a cryptocurrency app and platform with an easy-to-use user interface and menu system that allows clients to keep track of their transactions in nearly any cryptocurrency, including Bitcoin, Litecoin, Ethereum, and Bitcoin Cash.
Revolut includes basic international transactions and balance checks and more sophisticated features such as quick notifications, monthly reports, and the ability to set budget constraints. In addition, the programme boasts a “no financial borders” philosophy, allowing users to send and receive money in over 150 currencies from most nations. There are no additional fees for international transactions, and the platform accepts Bitcoin, Litecoin, Ethereum, Bitcoin Cash, and XRP.
The American app Robinhood makes it simple for users to trade stocks on the stock market. In addition, there are no commission charges or hidden costs when investing in the equities of the many US companies featured on the platform.
Acorns specialise in low-risk investing, intending to increase users’ savings by converting those savings into investments. Profits can be substantial depending on the alternatives you select and the portfolio you give.
Matador, which combines the capabilities of investment software and a social networking platform, allows you to keep in touch with friends while reviewing both your own and their assets. In addition, the app includes comprehensive company information, stock price history, and everything you need to know before trading.
Lemonade is an AI-powered insurance app with a registration procedure that takes less than a minute to fill out the relevant sections, transmit the information, and receive active home insurance.
Honeydue is a FinTech app for new families and couples that struggle to coordinate their finances with a Millennial target population. Users can keep their accounts in the same location and compare balances. Setting reminders for periodic payments and pinning remarks to particular expenses that you need to remember are two configuration choices.
CONCLUSION
The FinTech industry is now on the upswing. The audience is fascinated and eager to accept cutting-edge solutions, and the company has everything in place to match that need. There is little question that some new names will soon appear on the list of the most promising software solutions. Consider CYNERE as your trusted IT partner if you want to develop a strong business presence and improve revenue with innovative software. Our expertise can assist you in designing any financial technology, whether or not it is included in this article. Even if you’re not sure what form of FinTech software to use, contact us for a free consultation, and we’ll help you turn your idea into a modern, profitable tool!